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NACON Investor Presentation 2010
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Investor Presentation
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VAGON
DRIVEN BY DRIVES
Financial Report
January–December
2009
February 3rd, 2010
Vesa Laisi, President and CEO
Eriikka Söderström, CFO
Vacon Plc
VACON DRIVEN BY DRIVES
Disclaimer
- The content of this presentation contains time-sensitive information that is accurate as of the time hereof.
- A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.
- If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.
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VACON DRIVEN BY DRIVES
Outline
- Highlights Q4 2009 and Q1-Q4 2009, Vesa Laisi, President and CEO
- Financial Report, Eriikka Söderström, CFO
- Outlook, Vesa Laisi, President and CEO
- Appendix
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Vacon able to beat the market in 2009
Market development
- Market down by about 16 % in revenues (IMS 2009).
- Weakened demand in most segments.
- Investments to improve energy efficiency and in renewable energy generation remained brisk especially in Asia.
- Vacon does not expect the AC drive market to decline any further during 2010.
Business development
- Order intake declined 16.4 % to 256,1 MEUR.
- Revenues declined 7.2 % to 272,0 MEUR.
- According to Vacon's estimate it's market share increased to approximately 5 %.
- Operating profit was EUR 22.5 (34.6) million.
- Vacon initiated cost savings measures in Q3/2009. Cost savings program on track.
- To secure future growth Vacon has kept on investing in R&D and developing global presence according to strategy.
- Balance sheet remained strong.
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VAGON DRIVEN BY DRIVES
4Q/2009
- Orders, revenues and operating profit grew from Q3, but lower than Q4/2008.
- Business development positive in Asia.
- Investments still slow in EMEA and Americas.
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VACON DRIVEN BY DRIVES
Vacon revises its long-term financial targets
- Vacon’s goal is to achieve revenues of EUR 500 million in 2014.
- The long-term profitability targets are an operating profit of 14 % and a return on equity of more than 30 %.
- It was previously Vacon’s goal to achieve these targets in 2012.
- The global recession and the consequent decline in the global AC drive market has resulted in Vacon revising the schedule for the targets.
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VACON
DRIVEN BY DRIVES
Highlights Q4/2009
| MEUR | Q4/2009 | Q4/2008 | Change |
|---|---|---|---|
| Order intake | 63.5 | 67.2 | -6 % |
| Revenues | 64.2 | 75.2 | -15 % |
| Operating profit | 4.3 | 7.5 | -43 % |
| Operating profit -% | 6.7 | 10.0 | |
| Operating cash flow | 12.1 | 5.1 | 137 % |
| EPS, eur | 0.19 | 0.32 | -41 % |
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VACON
DRIVEN BY DRIVES
Highlights 2009
| MEUR | 2009 | 2008 | Change |
|---|---|---|---|
| Order intake | 256.1 | 306.5 | -16 % |
| Revenues | 272.0 | 293.2 | -7 % |
| Operating profit | 22.5 | 34.6 | -35 % |
| Operating profit -% | 8.3 | 11.8 | |
| Operating cash flow | 37.1 | 21.9 | 69 % |
| EPS, eur | 1.01 | 1.51 | -33 % |
| ROE, % | 20.5 | 34.3 |
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Dividend and Annual General Meeting
- The earnings per share for the fiscal year were EUR 1.01.
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0,70 per share be paid from the profit for 2009.
- The Annual General Meeting of Vacon Plc will be held in Vaasa at 3.00 pm on Tuesday 23 March 2010 at the premises of Åbo Akademi, Akademill, Rantakatu 2, Vaasa.
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VAGON
DRIVEN BY DRIVES
Financial Report
Eriikka Söderström,
Chief Financial Officer,
Vacon Plc
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DRIVEN BY DRIVES
Revenues
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VAGON DRIVEN BY DRIVES
Orders and revenues
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DRIVEN BY DRIVES
Order intake and order book
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VAGON DRIVEN BY DRIVES
Revenues by region
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VACON
DRIVEN BY DRIVES
Revenues by sales channel
| MEUR | 2009 | 2008 | Change, % |
|---|---|---|---|
| Direct sales (incl. SI) | 155.2 | 146.4 | +6 |
| Distributor | 24.6 | 34.4 | -28 |
| OEM | 51.7 | 60.0 | -14 |
| Brand label | 40.5 | 52.4 | -23 |
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DRIVEN BY DRIVES
Ebit
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Revenues and EBIT-%
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DRIVEN BY DRIVES
Research and development costs
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Operating Cash Flow
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DRIVEN BY DRIVES
Working capital
| MEUR | 31.12.2009 | 31.12.2008 | Change |
|---|---|---|---|
| Inventories | 19.3 | 21.3 | -9 % |
| Non-interest bearing receivables | 51.3 | 61.7 | -17 % |
| Non-interest bearing liabilities | 39.3 | 40.6 | -3 % |
| Net working capital | 31.2 | 42.5 | -27 % |
| Net working capital of revenues, % | 11.5 | 14.5 |
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Return on equity ratio
Return on equity -% = $\frac{\text{Profit for the financial year} \times 100}{\text{Shareholders' equity, average of the beginning and end of the year}}$
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Personnel
- The number of personnel increased by 31 in 2009. The increase mostly in China and new subsidiaries.
- At the end of December the Group employed 1,228 (1,197 in 31.12.2009) people.
- 627 (639) were in Finland
- 601 (558) in other countries.
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DRIVEN BY DRIVES
Key balance sheet ratios
Equity ratio
Net Debt and Gearing,%
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VAGON
DESIGN BY DRIVES
Outlook
Vesa Laisi, President and CEO
VACON
DRIVEN BY DRIVES
Strategy
The Goal 2014
Strategic Choices
100 % focus on AC drives
Product leadership
Multi-channel sales
Global presence and transnational operations
Strategic Competences
AC drives know-how
Common product platform design & product portfolio management
Customer relationship management
Mass customization, demand flow technology and global sourcing
Global ICT infrastructure and applications
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VACON
DRIVEN BY DRIVES
Prospects 2010
- The market not expected to weaken further during 2010.
- Vacon forecasts that revenues in 2010 will increase, profitability will be at the same level, and earnings per share will improve from 2009.
| ACT 2009 | FC 2010 | |
|---|---|---|
| Revenues, MEUR | 272,0 | > 272 |
| EBIT margin, % | 8,3 % | ~ 8,3 % |
| EPS, EUR | 1.01 | > 1,01 |
| ROE, % | 20,5 % | ~ 20,5 % |
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Risks and factors causing uncertainty
| The uncertainty in general demand | The availability and quality of raw materials and components. |
|---|---|
| Foreign exchange risks | Price competition |
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Contacts
- Vesa Laisi, CEO,
- +358 40 8371 510, e-mail: [email protected]
- Eriikka Söderström, CFO,
- +358 40 8371 445, e-mail: [email protected]
- Johanna Koskinen, IR,
- +358 40 8371 528, e-mail: [email protected]
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VACON DRIVEN BY DRIVES
Every AC motor deserves a Vacon drive